FORMS & LEGAL DOCUMENTS
What is a business contract?
A business contract is a legal agreement between you and another party, and may be used in situations where services are rendered for a fee or specific duties are required to be performed. To be legally valid, a contract must contain several key elements.
Contracts and agreements are important for conducting business for all sizes of companies. In earlier decades, there were few written business contracts, and many business and personal deals were done with a handshake. If a problem arose, the two parties could take the issue to court, and a judge would hear the case even if the contract was not put into writing.
While a verbal contract is still legal (except for in specific situations), most contracts are documented in written form. Contracts have become increasingly detailed these days, and every effort is made to make all possibilities and eventualities clear.
Enforceable Contracts
In addition to being clear and specific, a contract must meet certain criteria to make it legally enforceable. A legally enforceable contract can be used in court to support a decision on a disputed item. If a contract does not have certain essential ingredients, it is not legally enforceable.
Most contracts never see a courtroom and they could easily be verbal unless there is a specific reason for the contract to be in writing. When something goes wrong, a written contract protects both parties. If one party to a valid (enforceable) contract believes the other party has broken the contract (the legal term is breached) the party being harmed can bring a lawsuit against the party who it believes has breached the contract.
The legal process, or litigation, determines whether the contract has been breached or whether there are circumstances that negate the breach. The court, however, will only hear a contract dispute if the contract is valid.
Contracts vs. Agreements
Many people use the terms contract and agreement interchangeably, but they are not precisely the same thing. Black’s Law Dictionary defines an agreement as “a mutual understanding between…parties about their relative rights and responsibilities.” It defines a contract as “An agreement between…parties creating obligations that are enforceable.”
Essentials of Business Contracts
There are six required, essential elements for a contract to be valid (enforceable by a court). The first three, considered here together, relate to the agreement itself, and the other three relate to the parties making the contract.
Offer, Acceptance, and Mutual Consent
Every contract must include a specific offer and acceptance of that specific offer. Both parties must consent to their free will. Neither party can be coerced or forced to sign the contract, and both parties must agree to the same terms. Implied in these three conditions is the intent of the parties to create a binding agreement. If one or both parties are not serious, there’s no contract.
Consideration
There must be something of value exchanged between the parties. The thing of value may be money or services, but both parties must give something (otherwise, it is a gift, not a contract).
Competence
Both parties must be of “sound mind” to comprehend the seriousness of the situation and understand what is required. This definition requires that neither party be minors, both must be sober (not under the influence of drugs or alcohol when signing the contract), and neither can be mentally deficient. If one party is not competent the contract is not valid and the non-competent party can disavow (ignore) the contract.
Legal Purpose
The contract must be for a legal purpose. It cannot be for something illegal, like selling drugs or prostitution. Remember that it is not illegal to enter into a contract that doesn’t have all of these essential items; it just means that if an essential is missing the contract cannot be enforced by a court.
When a Contract Must Be in Writing
As noted above, verbal contracts can have the force of law, but some types of contracts must be in writing, like long-term contracts and contracts for marriage (pre-nuptials). There is also such a thing as an implied contract. You can unknowingly enter into a contract with someone and be forced to abide by its terms.
We offer many forms for businesses as well as individuals such as:
Bill of Sale (A bill of sale, also referred to as a “purchase and sale”, is a document that establishes the details of a transaction between two (2) parties, Buyer, and Seller. The form is usually very simple stating the financial terms of the agreement followed by the signature of the seller (buyer’s signature may not be required). The monetary funds (such as cash or certified check) should exchange hands at the time of purchase (which should also be dated in the bill of sale).)
Eviction Notice Forms-( An eviction notice, or “notice to quit”, is a letter sent by a landlord to tenant describing a violation or termination of the rental agreement. Upon receiving, the tenant will have a specified number of days to either comply or vacate the property. There are two (2) types of notices, curable and incurable. A curable notice allows the tenant to “make right” or “cure” the issue. An incurable notice requires the tenant to vacate the property by a specific date.)
Sending – It is highly recommended the landlord send by certified mail return receipt or hand-deliver to the tenant in order to have proof of their acceptance.
Rental Lease Agreements-( A rental agreement or lease is a legal document that outlines an arrangement between an owner of real estate, known as the “landlord” or “lessor”, and someone else that is willing to pay rent while occupying the property, known as the “tenant” or “lessee”.)
Living Will Forms- (A Living Will, also known as an “Advance Directive”, allows a person to state their end-of-life medical treatment and care. This document does not hold any bearings after death, it solely directs physicians to care for a person based on what is stated in their Living Will, especially with issues such as DNR (do not resuscitate). Without this document, it’s difficult to judge an ill or incapacitated person’s end-of-life wishes.)
Medical Power of Attorney – Allows a person to select an “Agent” to make health care decisions when the patient cannot speak for themselves (due to surgery, incapacitation, or incompetence).
LLC Operating Agreements- An LLC Operating Agreement is a legally binding business document that entails the ownership of its members, how the company is managed, and the structure of the LLC (Limited Liability Company). It can provide details such as when meetings are held, naming a registered agent, selecting managers and adding/dropping members.
Required in the States of: California, Delaware, Maine, Missouri, and New York.
Last Will and Testaments- (A Last Will and Testament (also referred to as a “Last Will” or simply a “Will“) is a document created by an individual, also known as the “Grantor” or “Testator”, which is used to layout how a person’s real and personal property shall be distributed after their death. After the form is created, signed and notarized, the Will should be distributed to all the Beneficiaries stated in the Will and to the Grantor’s Attorney. No State requires the document to be registered but it may be filed with certain County Clerks, Probate Courts, and applicable Secretary of State offices.
Signing Requirements By State – *Two (2) Disinterested Witnesses are required to make a Will valid (*Colorado and Louisiana require Two (2) Disinterested Witnesses and a Notary Public).
Self-Proving Affidavit – Attach to a Will or Codicil for the witnesses to swear under oath that they were in the presence of the testator while they signed the Will.)
How to Amend a Will
Use the Codicil to a Will (or simply a “codicil”) if the testator has decided to amend their Will. This can be for any reason such as changing the executor, personal representative, beneficiary(ies), or any other facet in the transfer of the estate. The Codicil is required to be attached to the Will and signed in accordance with State law.
Self-Proving Affidavit – It’s recommended that when any Will amendment occurs through a Codicil that the two (2) witnesses authorize to swear, under oath, that they watched the signature of the testator.
Will vs Living Trust
Both a Living Trust and a Last Will accomplish a similar goal, which is the delivery of ownership of one’s assets to their beneficiaries upon death. There are negatives and advantages to both but for most people, Living Trusts are seen to be the better option, especially with people of higher wealth.
Last Will and Testament
Probate court oversees your Last Will after your death.
Allows you to appoint a guardian for a minor.
Public knowledge after it is recorded.
Does Not avoid conservatorship, which is when a court appoints a representative to handle your finances. However, a conservatorship can be avoided with a Durable Power of Attorney, which will allow you to appoint a person of preference to handle your finances in the event you become incapacitated.
Living Trust
Probate court does not oversee a Living Trust. No jurisdiction.
Does Not allow you to appoint a guardian for a minor.
Private and therefore does not become public knowledge.
Avoids conservatorship. The successor trustee that you appoint will be responsible for transferring your property.
Will vs Living Will
A Living Will is directed towards your health care preferences if and when you become mentally incapacitated. It allows you to appoint a Health Care Proxy who will then carry out your health care preferences. A Last Will and Testament is legally enforced after your death which deals with the transfer of your assets and personal property
Frequently Asked Questions
No Will After Death (Die Intestate)
If there is no will that was recorded by the individual that has died (known as ‘intestacy’), and the estate is under the State threshold for probate proceedings, the property may be distributed through a Small Estate Affidavit.
Estate Planning Checklist
Use as a guide to ensure an individual’s estate is complete to the fullest extent by law as well as incorporate other end-of-life decisions. Power of attorney forms, for example, allow someone to choose someone else to make financial and medical decisions on their behalf if they aren’t able to do it themselves. In addition, a living will allows a person to make medical treatment requests if they should be incapacitated or decide if they would like their organs to be donated after their death.)
Simple Loan Agreements- (A loan agreement is a written agreement between a lender and a borrower. The borrower promises to pay back the loan in line with a repayment schedule (regular payments or a lump sum). As a lender, this document is very useful as it legally enforces the borrower to repay the loan. This loan agreement can be used for business, personal, real estate, and student loans.
An individual or business can use a loan agreement to set out terms such as an amortization table detailing interest (if any) or by detailing the monthly payment on a loan. The greatest aspect of a loan is that it can be customized as you see fit by being highly detailed or just a simple note. No matter the case, any loan agreement must be signed, in writing, by both parties.
Lending Money to Family & Friends – When talking about loans, most relate loans to banks, credit unions, mortgages and financial aid but hardly do people consider obtaining a loan agreement for friends and family because they are just that – friends and family. Why would I need a loan agreement for people I trust the most? A loan agreement is not a sign that you don’t trust someone, it is simply a document you should always have in writing when loaning money just like having your driver’s license with you whenever you drive a car. The people who give you a hard time about wanting a loan in writing are the same people you should be worried about the most – always have a loan agreement when lending money.)
Power of Attorney Forms- (A Power of Attorney Form is a legal document completed by an individual (the “Principal”) to appoint someone else to act on their behalf (the “Agent” or “Attorney-in-Fact”). The Agent may be able to handle financial, medical, guardianship, or tax-related matters. If the form is durable, this means the Agent will be able to continue to act on the Principal’s behalf if they can go no longer make decisions for themselves, which is common in the elderly. Signing – The forms are required to be authorized in accordance with their State laws.)
Promissory Note Templates- (A promissory note, or “promise to pay”, is a note that details money borrowed from a lender and the repayment structure. The document holds the borrower accountable for paying back the money (plus interest, if any). There are 2 types of promissory notes, secured and unsecured. A secured note is an agreement for borrowed money with the condition that if it is not paid back to the lender then the security, which is usually an asset or property, is turned over to the lender. Therefore, an unsecured note is an agreement for borrowed money although does not have any assets or property listed as collateral if the note goes unpaid.
Promissory notes are a do-it-yourself contract that you fill out to “promise” payment to an individual or bank by a certain deadline. It’s sort of like a more detailed and legally-binding IOU. They’re important for holding the borrower accountable for paying back a loan from a private investor or bank. They are also useful for keeping documented records of the loan for all parties involved and for tax purposes.)
Small Estate Affidavit Forms- (A small estate affidavit, also known as the ‘Affidavit for Collection of Personal Property’, is a document that allows individual(s) that feel they are rightly due to inheritance when the decedent, the individual that died, did not leave a will. This is only for those that have died with less than $5,000 to $150,000 (maximum depends on the State) total to their name. The individual(s) making the claim will have to submit a small estate affidavit to the Probate Court located in their county or jurisdiction. The petitioner will usually, after submitting, make a notice to any and all creditors as they are to be paid first if there are any outstanding debts on behalf of the decedent.)
Non-Compete (A Non-Compete Agreement is a document that attempts to block an individual or entity from potentially entering into competition with another party. This is most common when hiring employees, as individuals will be exposed to sensitive information about an entity that could later be used against it if the employee decided to create a “like” business in the future. This document can prohibit an individual from being able to work in the same field for a period of time or indefinitely due to the “trade secrets” that are passed on by the employer.
Types
Independent Contractor Non-Compete Agreement – Between a business and a party that is not an employee (individual or entity) that agrees to conduct services while withholding sensitive information.
Employee Non-Compete Agreement – Protects a Company from hiring an individual and teaching ‘trade-secrets’ without the fear of the individual using the information against the Company by being hired by another business or going out on their own.
Release of Non-Compete Agreement – Otherwise known as a ‘release of liability’ and allows a person that is in a non-compete to escape from the confinement of working in the industry.
Release Forms—( A Release of Liability, or ‘Hold Harmless Agreement‘, is a legal document that indemnifies an individual or business entity from legal and/or financial responsibility. Although, this is usually limited to negligence on behalf of the party being held harmless. If the release is being signed after the event took place, such as a car accident, the releasor may be paid money to sign such an agreement.
Types
Car Accident Release of Liability – Settles a fault and any further legal or financial strain from an individual or company that was involved in a motor vehicle accident.
Media (Video + Photo) Release – Allows a media company or any third (3rd) party to use video(s) or photo(s) for news publication.
Medical Record Information Release (HIPAA) – Standard form requiring the sharing of medical records from a hospital/doctor’s office to other individual’s the patient deems worthy.
Location (Event) Release of Liability – Most commonly used for school trips or activities where the group that is sponsoring it does not want to be accountable for any accidents that may occur while at the location or event.
Photo Release Form – For the general purpose of using a person, entity, or any type of picture that is made commercial use.
Real Estate Lien Release – This form erases any lien that has been placed on real estate by a contractor (mechanic’s lien) or any type of laborer.
Social Security Release of Information (Form SSA-3288) – In order to allow a third (3rd) party representative to access an individual’s Social Security benefit information.
Veterans Affairs Medical Records Release (VA Form 10-5345) – Use to release health care information being held by the VA to be transferred to another entity or individual.
Video Release – Allows another individual or entity to use footage of someone else for any type of video publication.
For any business conducting physical activity, whether it pertains to employees or customers, a Release of Liability Form is essential to have in order to protect your business from potential lawsuits. Lets say you operate a construction business that highly demands physical labor. There is a good chance that one day an employee might pull a muscle while handling construction material. Because this employee injured him or herself during normal operations, your company would not be at fault. However, if an injury were to result from negligence, a Release of Liability would be useless in the business’s defense. For example: An employee gets injured on the job due to faulty machinery that should have never been in service.
A Release of Liability Form is also referred to as the following:
- Liability Release Form
- General Release of Liability Form
- Hold Harmless Agreement
- Liability Waiver
- Waiver of Liability)
Letter of Recommendation- (A Letter of Recommendation is a written and signed document providing feedback on performance, partnership, leadership of an individual someone has worked with. This is also known as a letter of reference.
Types
Character Reference (for Immigration)Character Reference (for Court)College (High School Student)Eagle ScoutFraternityGraduate SchoolInternshipJob / EmployerLaw SchoolMBAMedical SchoolMilitaryPersonal (for a Friend)Physician AssistantProfessionalRegistered Nurse (RN)ScholarshipSororityStudentTeacherTenant (Landlord)Thank You (for a Recommendation)
Resignation Letters- (A resignation letter is a form that gives notice to an entity or organization of an employee’s intent to quit their job. The objective of a resignation letter, aside from informing the company of the employee’s resignation, is to maintain a positive relationship between the two parties.
Types of Resignation Letters
- 1 Week Notice
- 2 Weeks Notice
- Board Resignation
- Church (Religious) Resignation
- E-Mail Resignation
- Immediate Resignation
- Standard Job Resignation
- Nursing (RN) Resignation
- Police Officer Resignation
- Professional Job Resignation
- Retirement Resignation
- Teacher Resignatio
Deeds- (A deed form is a document that is used to transfer the ownership of real property from one (1) party to another, grantor to grantee. This is typically filled-in at the conclusion of a sale, referred to as the ‘closing’, and filed with the County Registry of Deeds.
Forms By Type
There are 2 popular ways to convey property:
General Warranty – Guarantees title for the Grantor’s time on the Property (the Seller) and also during the time for all previous owners of the real estate (also known as ‘fee simple).
Quit Claim – Mainly for situations when the owner of real estate transfers due to business, divorce, litigation, or between family. Typically, there is not a financial transfer from the party receiving title to the party that is granting it. There is no guarantee given by the transferring party that there aren’t any defects to the title of the property.)
Lease Termination- (Lease termination letters are used most commonly to allow a Tenant or Landlord to cancel a month-to-month lease agreement (also known as a ‘tenancy at will’). A lease termination letter may also be used to attempt to cancel a lease if the Tenant or Landlord has violated their lease by submitting a notice to quit, although, in this case, either party will usually have a time period to “cure” the issue. If the lease does not allow the lease to be terminated early the Tenant can make a formal request to terminate but it will be up to the Landlord to decide if they want to release the Tenant.)
Rental Application- (A residential rental application is a document that allows a landlord to make an assessment of a potential tenant’s employment, background, credit, and prior leasing history (through references) to make the decision of allowing him or her to lease their property. The landlord may request a fee (usually between $25 and $75) for performing a credit and background check. After verifying, commonly after 24-48 hours, the landlord will have the decision whether to approve or disapprove the tenant’s application. If approved, the tenant will be given a Lease Agreement.
What is a Release of Liability Form?
Bill of Sale Forms
For $49
Eviction Notice Forms
For $59
Rental (residential) Lease Agreements
For $79
Living Will Forms
For $99
LLC Operating Agreements
For $79
Promissory Note Templates
For $59
Small Estate Affidavit Forms
For $70
Non Compete Agreement
For $150
Lease Termination
For $150
Rental Application
For $79
Rental Application Commercial(ability to perform a credit check on a business entity (tenant)
For $150
